The third of the 5 C's - Capital, “Hurt Money”
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The Third C, which many Kiwis are facing at the moment as the major hurdle for getting into the property market, particularly into their first home, is Capital.
Lenders will carefully consider the amount of capital a borrower puts toward a potential purchase, whether it be owner occupied, or investment. This can vary dependent on the .....
The second of the 5 C's - Capacity, The Ability to Repay
The next ‘C’ is Capacity. This is a test that the lenders conduct to satisfy themselves that the borrower can repay the loan that is being applied for based on the client’s particular circumstances. It is sometimes referred to as Serviceability too.
A bank will view the numbers quite differently to your own calculations, which is why you may sometimes experience a.....
The first of the 5 C's - Character
Credit is governed by what is known as the 5C’s, I will be doing a five-part blog on each of these over the coming weeks which should assist readers in understanding what it is banks look for when assessing finance applications.
As the credit market tightens banks will look more closely at finance applications, and we might find that more and more frequently, what was previously approved, will not be in the times ahead.....